Now, with a solid $3,700 up, Ethereum is back in the news, showing parabolic momentum as its prices break important levels of resistance. The current gathering is driven by both robust market sentiment and technological structures. The road to $5,000 is beginning to look surprisingly clear as the $4,000 mark is the only important obstacle remaining.
Ethereum exploded from the range a few months after the $2,500, and $3,000 consolidation. This trend was solidified by consistent follow-throughs, but the initial catalyst was a breakout of over $3,030. The volume is also increasing, indicating that daily candles are closed high on a daily basis. It is a broad indication of institutional support and robust retail participation.
The only important resistance remaining on the chart is the $4,000 zone. This run does not see a clear break in the final psychological and technical ceiling from the 2021-2022 cycle. There is no identifiable pattern between $4,000. Also, there is no record high of $4,900 to $5,000 after being compromised. This resistance gap provides a unique opportunity for ETH to rise quickly and with little resistance. The RSI is currently above 87, and is heavily in the territory that was acquired, but a reversal is not necessarily implied.
RSIs purchased excessively during strong uptrends can withstand RSIs, especially when backed up by stable volume and momentum. The key now is how ETH will handle the $4,000 test. This can be either broken cleanly, integrated sideways, or rejected vigorously. Ethereum is well above the 50-100- and 200-day moving averages (EMA) and is currently in the bullish composition of textbooks.
Historically, this consistency has supported long assembly, especially when strengthened by macro tails such as institutional influx and ETF optimism. In summary, if Ethereum breaks over $4,000 in volume, $5,000 is the next technical and psychological target. Due to the resistance gap, Ethereum could reach that milestone in weeks rather than months if the Bulls are able to hold control.
